A broad reassessment of artificial intelligence spending has weighed on major technology stocks in 2026, erasing more than $1.3 trillion in combined market value from Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Nvidia Corp. (NASDAQ:NVDA), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOGL).
Investors have grown more cautious about elevated capital expenditure plans and longer-than-expected monetization timelines tied to AI initiatives.
According to The Sunday Guardian Live, Nvidia’s market capitalization has declined by $89.67 billion since the start of 2026 to $4.44 trillion. The broader pullback has also affected Microsoft, Amazon, and Alphabet, as markets reassess the timing and scale of returns from heavy AI investments.
Semiconductor Growth Outlook Remains Intact
Despite equity market volatility, industry fundamentals remain constructive. The Semiconductor Industry Association reported $791.7 billion in global chip sales for 2025 and projects 26% growth in 2026, placing the sector on track to approach $1 trillion in annual revenue.
SIA CEO John Neuffer said accelerating data center demand is driving that trajectory, while noting that cyclical swings are likely to continue.
The PHLX Semiconductor Index has advanced more than 56% over the past 12 months, compared with the Nasdaq 100 Index’s 11% gain.
Nvidia Earnings In Focus
On CNBC, Jim Cramer recently described Nvidia as the “GOAT,” comparing the company’s dominance and resilience to boxing legend Muhammad Ali. Speaking on “Squawk on the Street,” he acknowledged recent stock weakness but emphasized Nvidia’s competitive position.
Nvidia is scheduled to report earnings on Feb. 25, 2026. In recent years, the chipmaker’s quarterly reports have ranked among the most closely watched events of earnings season.
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